Horizon Oil Deems Results of Nama-1 Well in PNG's PPL 259 Non-Commercial

Australia's Horizon Oil Ltd. reported Friday that the Nama-1 exploration well in PPL 259, Western Province, Papua
New Guinea, which was spud Dec. 4, 2014 is currently at total depth of 11,591 feet (3,533 meters).

The well encountered a total of 252 feet (77 meters) of the target Early Cretaceous Elevala and Toro sandstones and Late Jurassic Kimu sandstones, which are productive in nearby Stanley field. Subsequently pressure measurements and sampling were taken in the key prospective zones, followed by the acquisition of side wall cores.

The sands, which were considerably thicker than predicted, calculate as being gas-saturated, however reservoir properties are of poor quality and cannot be considered to be commercially productive at this location.

Sidewall cores were run to determine the cause of reservoir degradation, which is thought to be diagenetic alteration, and the implications for possible lateral improvement. Interpretation of the well data, including the side wall cores, will be carried out to determine whether this is a localized effect, and if so, what potential remains in the broader Nama prospect.

The well is currently being plugged and abandoned and it is anticipated that Parker Rig 226 will be released over the weekend. The Company intends to update shareholders on the results of the interpretation work when completed and the implications for future evaluation of the prospect.

Participants Interest

• Ketu Petroleum Limited (a subsidiary of Horizon Oil Limited) - 35 percent
• Eaglewood Energy (BVI) Ltd - 45 percent
• Osaka Gas Niugini E&P Pty Ltd - 10 percent
• Mega Fortune International Limited - 10 percent